A Look At Walmart’s Partnership With JD.com

Walmart (NYSE: WMT) struck a partnership with the China-based ecommerce giant JD.com (NASDAQ: JD) three months ago. As part of the agreement between the world’s largest retailer and one of China’s leading online retailers, Wal-Mart has bought a 10.8 percent stake in JD.com.

On Thursday the two companies expanded their relationship through a series of new initiatives that will see Wal-Mart and its Sam’s Club branded products become available to consumers in China.

An exclusive Sam’s Club store will launch on JD.com’s platform on Friday and will offer consumers in China quality products that can be delivered the same day an order is placed.

Wal-Mart will be able to leverage JD.com’s logistics network that spans across China to reach the untapped market. The company also has plans to create an even larger physical retail space in China in which it will open 20 more Sam’s Clubs stores by 2019.

The agreement between the two companies will also see the creation of a Walmart Global store on JD worldwide which is the company’s cross-border platform. Chinese consumers will be able to purchase a variety of products imported by Walmart which it already sells globally.

The two companies also pledged to continue exploring ways where it can further collaborate and provide the hundreds of millions of Chinese consumers with superior products at fair prices.

“Walmart and JD.com share a vision of providing consumers the best products, quality and service, at highly competitive prices,” said JD.com CEO Richard Liu. “The three areas of cooperation that we are launching exemplify the rapid pace with which our strategic alliance with Walmart is progressing. Combining the strengths of Walmart, as the world’s largest retailer, and JD’s unparalleled same-day delivery network and reputation for authentic products is a potent force for providing Chinese consumers the best shopping experience.”

Walmart CEO Doug McMillon added, “Today’s news is the culmination of months of hard work and collaboration with the JD team. Our new services will leverage our combined strengths to give Chinese consumers access to quality products from around the world.”

Shares of JD.com have lost more than 17 percent since the start of the year and are drastically under-performing its larger rival, Alibaba Group, (NYSE: BABA) whose stock is higher by nearly 30 percent over the same time period.

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